Arthur Hayes, the subject of several investigations, has finally turned himself in to US authorities.
Sources say the Singapore-based cryptocurrency buff did this in Hawaii.
Sources further show he and the former CTO and COO of BitMEX (Benjamin Reed and Samuel Delo) are under intense scrutiny by the US Authorities for attempting to circumnavigate US money-laundering laws.
Delo turned himself in on March 2021, while Reed had been taken in by the US authorities as soon as the charges came to light.
Hayes has also been taken before a US Federal Judge and released on a $10 Million bail bond before Court processes move forward in New York.
The US Government Clamps Down on the Cryptocurrency Industry
This move by the US authorities comes as authorities have begun a general clampdown on cryptocurrency operations deemed to be operating in gray areas.
It also shows the impartial nature of US regulators to cryptocurrency operations.
Provided they operate within the ambit of the law, cryptocurrency businesses have nothing to fear.
On the other hand, though, the Joe-Biden administration has been lukewarm towards the cryptocurrency industry.
In February, US Treasury Secretary Janet Yellen made comments showing a growing discomfort with cryptocurrencies and their underlying technologies.
That said, the US authorities are looking deeply at operations such as BitMEX and others to determine the existence of impropriety or its lack thereof.
Another BitMEX Guy is on the Run
In what seems to be more of fire than smoke, BitMEX’s first operations personnel, Gregory Dwyer has been on the run since charges were laid against the quartet last October.
Though Dwyer is nowhere to be found, his legal representatives have been in touch with authorities.
“We have been in touch with the government on Mr. Dwyer’s behalf and have informed them of his whereabouts,”
legal representatives indicated.
“They are also aware that he has every intention to defend himself in court against these meritless charges and is eager to do so.”
While staunch cryptocurrency believers may see it as a witch-hunt but, a case of having too many executives of the same organization under investigation still creates murky waters that need clarity.
After charges were disclosed, Alexander Hoptner was tapped to lead BitMEX pending resolution of the situation.
The CFTC Has Been Digging into BitMEX’s Activities Since 2019
The US Commodities and Futures Trading Commission (CFTC) had started investigating BitMEX in 2019 to find out if the cryptocurrency exchange had flouted laws by allowing customers based in America to trade cryptocurrencies.
Other cryptocurrency exchanges are being investigated as well.
While the CFTC has been seen as pro cryptocurrency, its stance for strict compliance with US extant laws hasn’t changed.
While former CFTC Chairman Chris Giancarlo’s stance is well known, the CFTC has tried to ensure that the cryptocurrency space is well-regulated and policed.
As far as we all know, these will be interesting times!
The US Government is still yet to find a perfect approach to keep in line with the emergence of cryptocurrencies and their underlying technologies.
For now, the old rules will have to apply to everybody.